^ Good, glad to hear that.
As I said, I have dealt with similar issues and the reason was because of warez.
Not sure what to tell you on how to fix it, seems odd then.
A fresh restore certainly would cure it, but that sometimes is a lot of brain damage.

I am jailbroke. Have never installed this before though. I am going to try installing the cracked version with **********. Then ssh into the phone and delete the iTunes plist from the SMS touch app folder to see if this will stop iTunes from trying to update this stupid thing.